December 31, 2021

Panic! 16 NFT Ape Yatch Club Worth More Than RM 9.5 Million Stolen At OpenSea!

 The world’s largest non-fungible token (NFT) trading platform, OpenSea has frozen the Bored Ape Yacht Club and Mutant Ape collections after it was reported both were stolen from a New York art gallery operator yesterday.

It is understood that the theft involved 1 Clonex, 7 Mutant Ape Yacht Clubs, and 8 Bored Ape Yacht Clubs worth around 615 ETH ($ 2.28 million or RM 9.52 million).

The freezing caused the collection to not be traded on OpenSea.

The case was first detected when a toddkramer.eth account linking to Ross+Kramer Art Gallery uploaded a long thread on Twitter regarding the theft of 16 NFTs from a hot wallet.

However, the author failed to see the tweet, probably already deleted by the founder of the gallery.

The aftermath of the freeze on trade activities on the collection began to raise questions in the community - is NFT not decentralized?

Who was able to freeze the nfts? Feels pretty anti crypto to be asking third parties to do this and ideally they shouldn’t be able to. This was just extremely poor opsec on your part. True decentralized ownership no one should be able to step in. Good luck.

- kw.sol ◎ (@Forculus) December 30, 2021

Oh ok, I don’t own any crypto and I find it hilarious that all this stuff is actually secretly centralized, constantly getting stolen, or both

- The Wall (@thewall) December 30, 2021

But actually not.

The use of hot wallets that invites criminal activities such as theft and fraud. While the cold wallet is more reassuring because it is not connected to the internet like a hot wallet.

The NFT assets themselves are of course decentralized but the wallet and OpenSea have controls so that any crime does not continue.

Let's look at this article to differentiate between hot wallets and cold wallets.